Are Energy Penny Stocks Worthy Investment?
Penny stocks are low cost and each share must sell for $5.00 or less to qualify as a penny stock. In addition, the definition of penny stocks has more to do with the amount of stockholder equity and market value than the actually price. Penny stocks are risky, but energy penny stocks tend to be more stable. Look for penny stocks in “borderline” energy companies or companies who are new, do not have established patterns, or who are reorganizing. One example of a borderline energy company that made penny stock holders money is Mas Tec Inc. which opened in 1990 with a listed stock price of $4 per share. Mas Tec makes equipment for the transfer of wind turbines to the electricity grid became highly popular, profitable and its current price per share is now well over $20 per share.
A different type of alternative energy investing concerns those companies that produce biofuels from grape seed, algae, corn and soybeans. With today’s fad of living green, penny stocks related to these companies are recognized as high growth potentials by stock market watchers. Energy penny stocks are also trending for companies who explore and develop fossil fuel alternatives. Look into third world and small foreign countries that have native companies offering energy penny stocks. These foreign companies may sell older technologies but their penny stocks may skyrocket in the very near future due to decreasing oil markets. Do be wary of countries that are continuously changing political teams or changing the rules of the stock game. If you are looking to buy oil penny stocks and gas stocks check the country where the reserves are located to determine how much risk you want to take. A good source of penny stocks related to energy foreign, domestic and green is the Toronto Stock Exchange. This Exchange lists companies that are established but small and carry stock prices are well below $5.00 a share. The Toronto Exchange also has the honor of having the most energy related stock trading in the world.
High yield energy stocks include those stocks that are both volatile and undervalued. The disfavor with the nuclear energy market is helping to bring fossil fuels into fashion and companies who trade in fossil fuels are experiencing higher stock prices. You can still find penny stocks of energy companies that follow the world energy crisis, have low stock prices due to global stock market fluctuations as well as the energy unrest in the Middle East. Investigate penny stocks in Kandi Technologies. They develop electric cars, stock prices are low and interest is high. Solar power stocks in Sunvalley Solar, which manufactures solar equipment, currently has a very low penny stock price but the company is beginning to draw interest because of higher oil prices looming on the horizon. Watch other solar energy companies who do both research and development. At this time their penny stock prices are near $1.00 but could go considerably higher very quickly. Daily look for marginal companies who have low stock prices. These energy companies are often overlooked, but as oil prices rise, alternative energy sources become fashionable. Do your due diligence, research, list, use your gut instincts and follow market trends.